“GenZ protests have caused Rs 88 bn Loss to the private sector — attacks on business must stop”

By Chandra Prasad Dhakal
President, Federation of Nepalese Chambers of Commerce and Industry (FNCCI)

Nepal today stands at a crossroads between hope and uncertainty. The young generation has raised its voice, demanding good governance and an end to corruption. The government too is signaling efforts to respond to these concerns. The private sector, which has long carried the burden of risk and responsibility in the national economy, is trying to rise again — but deeply shaken.

It is known that during times of political movements, the private sector has always suffered. But this time, the damage has been unprecedented. Entrepreneurs invest by taking loans, mortgaging property, gathering savings, and often risking everything they have. We contribute to government revenues and create employment. Yet, businesses were burned, factories vandalized, shops looted, and even private homes of entrepreneurs were invaded. The emotional and economic shock is immense.

This moment forces us to reflect: Where did we go wrong as a society? Why has profit — which is simply the reward for providing service and generating economic activity — been portrayed as morally wrong? The objective of business is to serve through value creation, and in doing so, earn a return. To demonize this principle only discourages investment and undermines national progress.

These attacks cannot be justified in any name or ideology. If those who commit vandalism, arson, and looting are not held accountable, impunity will become the norm. Therefore, strict action is necessary to ensure such incidents do not recur.

The purpose of organizing this national dialogue today, attended by the Rt. Honorable Prime Minister, Ministers, the Chief Secretary, the Governor, and senior government officials, is to collectively ensure a secure working environment for Nepal’s business community.

The Private Sector Is the Backbone of Nepal’s Economy

According to a joint study by the International Finance Corporation (IFC) and FNCCI, the private sector contributes:

During COVID-19, even when the Supreme Court had granted tax filing extensions, we encouraged businesses to pay taxes on time for the sake of the nation’s financial stability. As a result, the government succeeded in meeting revenue targets even in the first year of the pandemic.

We have always demonstrated responsibility. Even now — during this difficult period — we continue to rebuild, support workers, and maintain market confidence. The government has also shown understanding. Immediately after the recent damages, the Ministry of Finance facilitated customs, insurance, and banking support, and the Home Ministry instructed all District Security Committees to include local Chambers of Commerce to help ensure business protection. These are positive steps.

But protection must translate to enforcement. Those responsible for arson and looting must be prosecuted, and security agencies must act decisively so that such incidents do not repeat.

The National Planning Commission is currently conducting detailed damage assessments, and FNCCI is assisting in collecting private sector data. If the situation deteriorates again — if tourism fails to recover, if supply chains are disrupted, if street unrest resumes — losses will escalate further.

The World Bank has already revised Nepal’s projected economic growth downward to around 2% for this fiscal year. At such a time, the morale of the private sector must be strengthened, not weakened.

Government Must Pass a Policy to Protect the Private Sector

The private sector contributes employment, taxation, infrastructure development, and community welfare. The state must recognize this contribution and communicate it clearly to the public.

I request the government to pass a Cabinet-level national policy declaring the protection and promotion of private enterprise, ensuring:

FNCCI is preparing a national Economic Reconstruction and Recovery Plan, which includes strategies to boost domestic demand, rebuild affected enterprises, and expand employment. Implementation will require government partnership.

Governance Reform and Entrepreneurial Growth Must Move Together

Good governance is also the demand of the private sector. Last year, FNCCI made governance the central agenda of its Annual General Meeting. Only government-led bodies cannot deliver meaningful governance reforms. A governance framework with structured private sector participation must be created immediately.

Similarly, export subsidies must be restored. Bangladesh has requested the UN to reconsider its LDC graduation timeline. Nepal too should request at least a three-year extension and continue export incentives.

Developing Youth Entrepreneurship and Startup Growth

The Startup Policy has been introduced, and grants have begun — but implementation must become stronger. FNCCI proposes launching a National Youth Entrepreneurship Development Program led jointly by the Government and FNCCI’s Youth Entrepreneurs Council.

State-approved infrastructure projects are being obstructed in many regions due to local interference and procedural delays. For investment confidence, the government must guarantee zero obstruction for legally approved projects, backed by state security where necessary.

To mobilize domestic capital, FNCCI, CNI, industry leaders, NRNs and investors have jointly established Nepal Development Public Limited (NDP) — a platform to finance large-scale national infrastructure projects through internal capital mobilization.

Time for Political Stability and National Consensus

Lasting peace, political stability, and timely elections are essential for economic recovery. We request all political parties, youth leaders, and state institutions to work collaboratively toward a stable and investment-friendly environment. The private sector is ready to fully support such efforts.

Recently, the Honorable Finance Minister remarked, “The private sector is a fruit-bearing tree. The more we care for it, the more the nation benefits.”
The entire private sector hopes that under the stewardship of the Rt. Honorable Prime Minister, we will now receive such protection and partnership, enabling Nepal to move forward toward prosperity.

This article is based on the remarks delivered by Chandra Prasad Dhakal at the National Economic Dialogue 2.0.